Traditional ways to advertise not as effective anymore | Cafes in Singapore

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“Traditional ways of advertising are not effective” is a follow up on another article, where we talk about the mediocre results that traditional media is producing for your coffee shop.

Not being able to deliver your expected results is one of the main reasons why it is not cost-effective.  But the fact is, even the cheapest form of traditional media is not cheap.

Let's look at flyers distribution, the cheapest way traditionally of getting the word around in Singapore. There are generally two ways to get to your target audience.

1. Mailing it to their house, with coupons and discount

2. Distributing it around the vicinity near your coffee shop.

For the first method, you have to go through Sing Post, since they hold the master keys to all the letter boxes and only they can deliver the direct mailers to everyone.

The cost is about $600 for delivery to 5000 households. For 5000 flyers, the printing cost is about $200 and the design and conceptualization might cost another $200.

So you spend about $1000 on this project, anyone in the mailer industry would tell you that the hit rate is about 0.001 percent. That means out of the 5000, only 5 would respond.

IT’s not too bad if you are selling properties that will generate an income of a few thousand dollars. But, for a coffee shop business, how much can the 5 people spend? $100?

Even so, you are still not able to break even for your $1000 investment.

The second method is better, you save $600, but probably need to fork out $100-200 to engage one or two part timers to distribute the flyers.

Since it is near your vicinity, you probably can break even on your investment, but why are you doing it in the first place -just to break even?

We should not even go into TV or newspaper, their costing is much higher, thus it is unlikely you can recoup the investment spent on advertisements.

We might not have the perfect answer to this, but we do have a cost effective way of doing up some marketing promotions for you. Do check it out.

To read about other “should ask” questions (similar to Traditional ways of advertising are not effective), check out this link.

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From the plan and objectives, we will also come out with strategies on how to better market your coffee business.

And while there will definitely be some promotional expenses, it will be much lower than what you would have spent on your coffee shop decor, coffee shop equipment and in fact, most coffee shop furniture as well.

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